After two years of beta-testing on 1 million users in India, social messaging giant WhatsApp is reportedly launching its payment service, Whatsapp Pay, for another 10 million people, subject to regulatory approval. The entry of Facebook-based WhatsApp in India’s digital payments industry is expected to cause a major disruption since the messaging app has over 400 million subscribers in the country.
The phase-wise rollout of Whatsapp Pay in India will depend on the measures it takes to comply with data localisation and other privacy measures. The messaging service major has been assuring the Reserve Bank of India and National Payments Commission of India that it will fully follow the regulatory approval process.Facebook founder and chief executive officer Mark Zuckerburg told analysts during the last quarter earnings call that WhatsApp Pay feature involving Peer-to-Peer (P2P) transactions is ready to be rolled out in at least six countries after its successful beta-run in India. Queries sent to WhatsApp India did not elicit response. Disruption in fintech space?
The NPCI’s subsequent nod to WhatsApp to start its payment services in India could majorly impact the revenues of Google Pay, Walmart-backed Phone Pe, Alibaba-and-Softbank-backed Paytm, which have been dominating the rapidly growing digital payments industry in India. Among all the modes of digital transactions, United Payment Interface (UPI) grew the fastest at 885 per cent, according to a recent Razorpay report.
WhatsApp Pay, say sector analysts, will be able to clock the highest value as well volume transactions in India, considering its large existent user base as well as simple interface. At present, Google Pay, PhonePe and Paytm jointly clock an average of 700 million transactions per month in India.PhonePe and Paytm have leveraged their growing user base to extend to offline payments and signed up millions of traders and merchants on its platform in a highly competitive fintech space.
Large user base to be WhatsApp’s advantage
WhatsApp Pay will be able to clock the highest value and volume transactions in India, considering its large existent user base and simple interface. At present, Google Pay, PhonePe and Paytm jointly clock an average of 700 million transactions month in India.